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Mapletree Logistics Trust's Dividend Analysis

Assessing the Sustainability of Mapletree Logistics Trust's Dividend

Mapletree Logistics Trust (MAPGF) recently announced a dividend of $0.02 per share, payable on 2024-03-20, with the ex-dividend date set for 2024-01-31. As investors look forward to this upcoming payment, the spotlight also shines on the company's dividend history, yield, and growth rates. Using the data from GuruFocus, let's look into Mapletree Logistics Trust's dividend performance and assess its sustainability.

What Does Mapletree Logistics Trust Do?

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Mapletree Logistics Trust is a real estate investment trust focusing on logistics properties. As of March 31, 2023, the trust had a SGD 12.8 billion portfolio of 185 properties, spread across Singapore, Hong Kong, Japan, China, South Korea, Australia, Malaysia, Vietnam, and India. The trust is externally managed by Mapletree Logistics Trust Management Ltd, a subsidiary of Mapletree Investments Pte Ltd, which owns around a 32% stake in the trust.

Mapletree Logistics Trust's Dividend Analysis
Mapletree Logistics Trust's Dividend Analysis

A Glimpse at Mapletree Logistics Trust's Dividend History

Mapletree Logistics Trust has maintained a consistent dividend payment record since 2011. Dividends are currently distributed on a quarterly basis. Below is a chart showing annual Dividends Per Share for tracking historical trends.

Breaking Down Mapletree Logistics Trust's Dividend Yield and Growth

As of today, Mapletree Logistics Trust currently has a 12-month trailing dividend yield of 6.09% and a 12-month forward dividend yield of 6.12%. This suggests an expectation of increased dividend payments over the next 12 months.

Over the past three years, Mapletree Logistics Trust's annual dividend growth rate was 3.60%. Extended to a five-year horizon, this rate increased to 5.30% per year. And over the past decade, Mapletree Logistics Trust's annual dividends per share growth rate stands at 3.00%.

Based on Mapletree Logistics Trust's dividend yield and five-year growth rate, the 5-year yield on cost of Mapletree Logistics Trust stock as of today is approximately 7.88%.

Mapletree Logistics Trust's Dividend Analysis
Mapletree Logistics Trust's Dividend Analysis

The Sustainability Question: Payout Ratio and Profitability

To assess the sustainability of the dividend, one needs to evaluate the company's payout ratio. The dividend payout ratio provides insights into the portion of earnings the company distributes as dividends. A lower ratio suggests that the company retains a significant part of its earnings, thereby ensuring the availability of funds for future growth and unexpected downturns. As of 2023-12-31, Mapletree Logistics Trust's dividend payout ratio is 0.88, which may suggest that the company's dividend may not be sustainable.

Mapletree Logistics Trust's profitability rank, offers an understanding of the company's earnings prowess relative to its peers. GuruFocus ranks Mapletree Logistics Trust's profitability 7 out of 10 as of 2023-12-31, suggesting good profitability prospects. The company has reported positive net income for each of year over the past decade, further solidifying its high profitability.

Growth Metrics: The Future Outlook

To ensure the sustainability of dividends, a company must have robust growth metrics. Mapletree Logistics Trust's growth rank of 7 out of 10 suggests that the company's growth trajectory is good relative to its competitors.

Revenue is the lifeblood of any company, and Mapletree Logistics Trust's revenue per share, combined with the 3-year revenue growth rate, indicates a strong revenue model. Mapletree Logistics Trust's revenue has increased by approximately 4.80% per year on average, a rate that outperforms approximately 67.71% of global competitors.

The company's 3-year EPS growth rate showcases its capability to grow its earnings, a critical component for sustaining dividends in the long run. During the past three years, Mapletree Logistics Trust's earnings increased by approximately 2.00% per year on average, a rate that outperforms approximately 51.61% of global competitors.

Lastly, the company's 5-year EBITDA growth rate of -3.60%, which outperforms approximately 32.77% of global competitors.

Concluding Insights on Dividend Viability

In conclusion, Mapletree Logistics Trust's consistent dividend history, reasonable yield, and growth rates paint a generally positive picture for income-focused investors. However, the relatively high payout ratio may raise concerns about long-term sustainability unless offset by continued earnings growth and profitability. Investors should weigh these factors alongside the trust's growth metrics and profitability ranks to determine if Mapletree Logistics Trust aligns with their investment strategy. With the trust's robust revenue model and earnings growth, the dividends may remain appealing, provided the company manages to balance its payout with its growth investments.

GuruFocus Premium users can screen for high-dividend yield stocks using the High Dividend Yield Screener.

This article, generated by GuruFocus, is designed to provide general insights and is not tailored financial advice. Our commentary is rooted in historical data and analyst projections, utilizing an impartial methodology, and is not intended to serve as specific investment guidance. It does not formulate a recommendation to purchase or divest any stock and does not consider individual investment objectives or financial circumstances. Our objective is to deliver long-term, fundamental data-driven analysis. Be aware that our analysis might not incorporate the most recent, price-sensitive company announcements or qualitative information. GuruFocus holds no position in the stocks mentioned herein.

This article first appeared on GuruFocus.